This paper explores the feasibility and desirability of CorporateSocial Responsibility (CSR). We identify CSR with creation of publicgoods or curtailment of public bads. Using a model with pro…t-maximizing …firms, the paper shows that there is a direct parallel be-tween CSR and traditional...

We analyze the effect of inequality in the distribution of endowment of a private input (briefly,wealth) that is complementary in production with a collective input on effciency. The collective inputis the outcome of a collective action problem (e.g., contribution to pure or impure public goods...

We study market inefficiencies and policy remedies when agents choose their occupations, and entrepreneurialtalent is subject to private information. Untalented entrepreneurs depress the returns to entrepreneurshipbecause of adverse selection. The severity of this problem depends on the outside...

If we are to learn the right lessons from the tragedy ofNandigram, then we must ensure that the government is involvedin the land acquisition process and that we correctly deal withthree sets of issues: the size and form of compensation, theeligibility for compensation and the credibility of the...

Buyer-Seller networks are pervasive in developing economies yet remain relatively under-studied. Using primary data on contracts between the largest tractor assembler in Pakistanand its suppliers we …find large variations in prices and quantities across suppliers of the sameproduct....

In this paper we analyze the effect of inequality in the distribution of endowments of privateinputs (like land, capital) on production efficiency through its effect on the voluntary provisionof collective inputs (like irrigation, public research) that are complementary in production withthose...

Effective provision of public goods is a key determinant of quality of life. Conventional approaches to poverty measurement look only at private goods, butthis view is too narrow. Access to safe drinking water, sanitation, transport,medical care, and schools is essential both as a direct...

This paper proposes a simple framework to study incentives and matching in the marketfor teachers. The framework is used to investigate the consequences of introducing incentivepay for teachers when contracts have both a matching and an incentive effect. Our analysissuggests that school...

We show that the joint liability lending contracts derived in Ghatak (2000) violate an ex post incentive-compatibility constraint which says the amount of joint liability cannot exceed the amount of individual liability. We derive and characterize optimal separating joint liability contracts...

A unifying theme in the literature on organizations such as public bureaucraciesand private nonprofits is the importance of mission, as opposed to profit, as anorganizational goal. Such mission-oriented organizations are frequently staffed bymotivated agents who subscribe to the mission. This...